US Companies Prioritize Risk Management in Supply Chain Transformations: KPMG Survey

Why It Matters

Heightened risk exposure forces firms to re‑engineer supply chains, reshaping capital allocation and technology roadmaps across multiple industries. The shift signals a broader market move toward resilient, data‑driven operations that could redefine competitive advantage.

Key Takeaways

• 47% of U.S. firms spend 11‑15% of revenue on supply chain.
• 73% plan comprehensive supply chain transformation within 1‑3 years.
• Risk mitigation leads transformation goals, cited by 51% of executives.
• Predictive analytics chosen by 41% as primary risk‑management tool.
• 84% report full digitalization, up from 20% in 2024.

Pulse Analysis

Geopolitical volatility and rising production costs are compelling U.S. firms to treat supply‑chain risk as a strategic priority. The KPMG survey shows a sharp uptick in spend—nearly half of respondents now allocate more than a tenth of revenue to supply‑chain functions—reflecting a shift from cost‑center to value‑center thinking. Executives cite managing geopolitical uncertainty as the top transformation objective, underscoring how external shocks are reshaping long‑term planning and capital deployment.

Technology adoption is the engine driving this transformation. Over 80% of surveyed companies claim full digitalization of their supply‑chain operations, a dramatic rise from just 20% two years ago. Predictive analytics, AI‑enhanced demand planning, and increased automation are being deployed to boost visibility and flexibility. Yet barriers persist: limited technical capability, data‑security concerns, and organizational resistance still hinder full rollout. Companies are addressing these gaps by upgrading ERP systems, investing in data‑management platforms, and expanding employee training programs.

Talent scarcity adds another layer of complexity. More than three‑quarters of respondents acknowledge a skills gap in procurement and logistics, especially around visibility and demand planning. While competition for talent intensifies, 50% of leaders believe that AI and automation will offset shortages by handling routine tasks and freeing staff for higher‑value work. The convergence of risk‑focused strategy, digital tools, and upskilling initiatives is set to redefine supply‑chain resilience, making it a critical differentiator for manufacturers and distributors alike.